Iconic Williams Tower on the market

Williams Tower, one of Houston’s landmark skyscrapers, is on the block, another indicator of strength in the city’s commercial property market.

The 64-story tower, at 2800 Post Oak Blvd. near the Galleria, is owned by a subsidiary of the Hines Real Estate Investment Trust, which purchased the property in 2008 from Kuwaiti owners for $271.5 million, a Securities and Exchange Commission document showed.

This go-round, the building could fetch $475 million, according to Real Estate Alert, a national commercial real estate publication that first reported the building is for sale.

Houston-based Hines, which manages the building and has its U.S. headquarters there, confirmed the building is for sale. It has hired Jones Lang LaSalle to market the tower.

The offering comes at a time of growth in the area’s office market, which has benefited from strength in the energy industry and increased employment that has driven demand.

Buildings have been selling for record prices, as investors target the area’s best properties with strong leases in place. Developers have also started new buildings as supply has been limited and demand grows.

“Houston is the preferred market,” John Fenoglio, an executive vice president of commercial real estate firm CBRE, said at a recent industry event.

Transco Energy, a subsidiary of Williams Cos., is the biggest tenant, occupying 277,000 square feet, according to the Real Estate Alert report. Its lease, which expires in 2014, includes three five-year renewal options.

Real Estate Alert also noted that Kinder Morgan is seeking to sell and lease back most or all of its building at 1001 Louisiana. The property was recently renovated.

Hines built the 1.4 million-square-foot Williams Tower in the early 1980s. It was formerly known as the Transco Tower.